Taxes not to be raised in Ukraine just yet - Finance Minister

Taxes not to be raised in Ukraine just yet - Finance Minister

There are currently no plans to increase taxes in Ukraine, but a VAT refund on imports and import duties is being considered.

Minister of Finance Serhiy Marchenko said this on the air of the national telethon, an Ukrinform correspondent reports.

"We do not envisage an increase in taxes, we do not envisage strict conditions for their payment. We seek to restore a properly functioning tax system and the customs system in order to be able to balance the budget," Marchenko said.

According to the minister, the first stage is the VTA refund on imports and import duties. Marchenko believes that this will help support Ukrainian businesses.

Read also: Council of EU increases military aid to Ukraine up to EUR 2B

At the same time, the finance chief noted, in the event of a long war, it will be necessary to return to the tax system, which was in force until February 24.

"This is a forced decision," he added.

Marchenko stressed that the state has no other options for financing the army than getting taxes. Ukraine cannot constantly borrow money to support its forces.

As reported, the Verkhovna Rada on March 15 approved tax incentives for businesses amid war. Thus, the income limit for single tax payers was increased from UAH 10 million to UAH 10 billion. This has significantly expanded the range of companies that will be able to reduce the tax burden during the war and maintain their operations. The sales tax is set at 2%.

Ukraine also abolished excise duties and reduced VAT (up to 7%) on fuel.

Let’s get started read our news at facebook messenger > > > Click here for subscribe

While citing and using any materials on the Internet, links to the website not lower than the first paragraph are mandatory. In addition, citing the translated materials of foreign media outlets is possible only if there is a link to the website and to the website of a foreign media outlet. Citing and using materials in offline media, mobile apps, Smart TV are allowed only with written permission from Ukrinform. News and publications marked as "Advertisement" and "PR" and articles in the section "Releases" include promoted content, and an advertiser is responsible for the content.

© 2015-2022 Ukrinform. All rights reserved.

Website design Studio Laconica

Extended searchHide extended search
By period: